With so many FAST services, differentiation is becoming key to survival. But just adding more channels isn’t the way to do it. Can experience, originals, and a sharper viewer deliver?
More channels do not help with differentiation
FAST providers continue to expand the number and type of channels they offer through their services. For example, FreeStream, the FAST service from Sling TV, added eight channels to its lineup last week. Six of the eight channels appear on multiple other services. FreeStream is the only FAST service to provide the other two channels – Maximum Effort and 
The Three Stooges – but the relationship does not appear to be exclusive.[i] In the last month, FreeStream has added 23 channels and now provides over 400.
The problem for FAST service operators is that there is very little differentiation between them. And just providing a large number of channels is unlikely to help. No matter how many channels operators threw at subscribers in the cable era, the average number watched remained the same; 17. Simply providing more channels than a competitor isn’t likely to move the needle for viewers.
Jeff Shultz Chief Business Officer Pluto TV
The lack of differentiation between FASTs could be fatal, according to Jeff Shultz, Chief Strategy Officer, and Chief Business Development Officer for Paramount Streaming at Paramount Global:
“If the service or set of channels you are offering isn’t differentiated, it probably won’t have a sustainable business model under FAST in its end state.”
Simply providing a large number of channels, most of which are also carried by several other services, isn’t going to differentiate a service. So, what are the options?
A better experience
Let’s face it; the grid guide experience is pretty abysmal. It failed to do a good job for cable TV viewers with less than a hundred channels, and doubling or tripling the number, as FASTs are doing, is not helping. Sure, the experience is familiar, but that isn’t necessarily a good thing. There is plenty of room for improvement.
Amagi, Accedo, and ThinkAnalytics grid guide demo
If services must continue to use the grid guide, they should use personalization to make it more effective. At NAB 2023, a joint demonstration from Accedo, ThinkAnalytics, and Amagi personalized the channels in a grid guide based on the users viewing history. The most used channels appeared at the top of the guide. The first channel in the guide is more like a playlist, with videos based on the viewer’s interests playing back-to-back.
Exclusive AND popular content
FAST services are beginning to create original content for their services. For example, Roku this week ordered a home renovation series from Velvet Hammer Media called Empty Nest Refresh. Other shows the company has ordered this year include Fight to Survive, Reptile Royalty, and UFO Cowboys. Originals are also available on Tubi, Crackle, Freevee, and other FAST services.
Unfortunately, the originals are not helping retain viewers. According to TiVo, nearly a third only use a FAST service for three months or less. The problem could be that the amount of originals on FASTs remains relatively low, the genres and subject matter are scattered, and the rate at which the content flows into services is also low. When viewers are attracted to a show, they come, watch it, and leave.
That said, originals and other exclusive content are important in differentiating a FAST service. And if a service can deliver a certified hit on a par with Orange is the New Black, NCIS, or Succession, it could be a game-changer. Signs are good that it can happen. Freevee’s Jury Duty appeared in Reelgood’s top ten streaming titles for three weeks in May.
Target a differentiated group of viewers
All the top FAST services compete in the same category: general entertainment. It might seem that this is the best strategy since ad-supported services want to attract the most number of people as possible. If there is something for everyone, then everyone is a potential viewer. However, with so many general entertainment services to choose from, the audience ends up spending a little time with a lot of services.
Rather than aggregating many channels for a general audience, why not seek to become the one essential FAST for a (large) differentiated group of viewers? Fubo offers the widest selection of sports channels in the vMVPD industry and has amassed 1.3 million subscribers, each paying more than $65 per month. FAST services could take the same approach.
For example, a FAST service targeting the fandom community (FandominaTiVe?) could pull together channels including anime (FilmRise Anime, Naruto), Sci-Fi (Alien Nation by DUST, Star Trek), and gaming (EDGEsports, A8 Esports Talk.) It could also build channels to target the audience better. How about a single IP channel for Cosplay enthusiasts partnering with the creators of the docuseries Heroes of Cosplay?
[i] Maximum Effort is also available on Fubo, but only to subscribers.
